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Vince Cable owes Nomura one after the Japanese bank broke ranks and slashed its target price on Royal Mail.

The Business Secretary has been widely criticised for selling the former state-owned postal operator on the cheap. The shares have almost doubled after they were floated at 330p in October, enough to catapult the company into the FTSE 100 when the reshuffle takes place next week.

Yesterday, analysts at Nomura issued a “sell” note with a target price of 490p (when just about every other analyst’s valuation starts with a “5” or a “6”). It pointed out that while profits are